Gold, Silver Trim Gains In Europe Hours

Gold futures trimmed the gains in the early European trading hours today after trading sharply higher in the Asian mark

et hours. Profit booking along with the firmness in the US dollar hindered the upside for yellow metal and other commodities.
European stock markets traded lower in early action on Monday, tracking losses seen overnight in Asia and last week in the U.S. where worries over rising Treasury yields spooked investors. The U.K.'s FTSE 100 index dropped 0.3% to 6,483.71, while France's CAC 40 index gave up 0.7% to 4,096.90. Germany's DAX 30 index gave up 0.6% to 8,338.65.
Gold for December delivery are trading up $1 at $1,372 an ounce on the Comex division of the New York Mercantile Exchange. It jumped 1.15% on Friday to settle the week at $1,376.30 a troy ounce. The metal may find support near $1300 levels with resistance near $1400 an ounce.
Gold prices added 4.55% last week the strongest gain since the week ending July 12. The precious metal has rebounded 16% since hitting a 34-month low of $1,180.15 a troy ounce on June 28.
September silver futures are trading above $23 an ounce in the Asia electronic session today. It rallied 1.3% on Friday to settle the week at $23.23 a troy ounce, the strongest level since May 15. Last week, it surged 11.7%, the biggest weekly advance since September 2008. Silver prices are up 24% since hitting a three-year low of $18.19 on June 28.
Minutes from the Fed’s policy meeting in late July may shed more light on the taper timing, including information on how many policy makers were ready to slow asset purchases. The minutes are due out Wednesday.
MCX October gold futures are trading down nearly Rs 50 at Rs 30795 per 10 grams. It may find support near Rs 30700 levels and Rs 30590 levels.
MCX Silver futures are trading down nearly Rs 200 at Rs 50470 per kg. It may find support near Rs 50300 and Rs 50100 levels.

Gold Extends Gains; COMEX Closed Today

Gold futures extended gains above $1250 an ounce in the Asia electronic session today getting safe haven appeal from political turmoil in Egypt and Portugal. U.S. markets will be closed on Thursday for Independence Day. Regular trading for Comex will resume Friday.
Gold for August delivery is trading up $3 at $ 1255 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $8.50, or 0.7%, to settle at $1,251.90 an ounce. U.S. markets will be closed on Thursday for Independence Day. Regular trading for Comex will resume Friday.
The worse than expected fall in the Institute for Supply Management said its services index fell to 52.2% in June abating the fears of early wind up of Fed’s QE.
Monetary stimulus by the Fed and other central banks helped fuel price gains for gold in recent years. Gold prices in 2013 have plunged, however, in part as the Fed has said improvement in the economy may lead it to pull back on bond purchases as early as this year.
The data released yesterday showed that the U.S. employers added 188,000 private jobs in June, Automatic Data Processing said. Economists had expected an increase of 160,000 private jobs. Also, the Labor Department said first-time jobless claims declined by 5,000 to 343,000 last week, better than forecast. The reports lead up to Friday’s release of the highly anticipated U.S. monthly employment report.
MCX August gold futures may open today’s session near Rs 26200 levels with resistance near Rs 26300-350 levels and support around Rs 26150 levels. A tight range may be expected in gold today as the international markets remain closed today

MCX Gold Jumps Above Rs 26k

MCX gold staged a rebound of more than Rs 1000 per 10 grams after it fell below Rs 25000 per 10 grams last week sacked down by the signal from the chairman of the Federal Reserve, Ben Bernanke that he intends to cut back the US central bank's $85bn-a-month stimulus programme.
MCX August bullion futures jumped more than Rs 200 at Rs 26199 per 10 grams. The counter may face a resistance near Rs 26350 levels. COMEX August gold futures jumped more than $10 at $ 1266 an ounce today.
Last week, domestic gold prices hit a 23-month low of Rs 24830 per 10 grams on Friday 28 June 2013 on heavy selling triggered by a sharp plunge in global gold prices and on account of the strengthening of the Indian rupee. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. It hit a high of 59.21 in intraday trade today after closing at 60.19 on Thursday.
Immediately after Bernanke announced the QE plan and gold crashed many investment banks started cutting the price forecast for the precious metal dragging it further lower. The metal plunged 6.3% in a single session last week after Fed Chairman Ben Bernanke said the U.S. central bank could start winding down its $85-billion-a-month bond-buying program later this year.
International gold prices have dropped by nearly 15% – the steepest fall in 30 years – on strength in the US dollar and on persistent worries over the U.S. Federal Reserve's plan to wind down its monetary stimulus. So far in 2013 the metal is down nearly 30%, sliding since Fed Chairman Ben Bernanke laid out a strategy to wind down the bank's $85 billion monthly bond purchases on the back of a recovering economy.
Fall in the domestic gold was far less than a near 14% fall in the international gold prices, the credit of which goes to the persistent fall in Indian Rupee. If the MCX gold would have fallen in pace with the COMEX gold then the metal would have slipped to below Rs 23500 levels.
Traders and investors are awaiting U.S. payrolls report for June, due on Friday, for a better indication of how gold and other assets would perform. A strong payrolls reading would likely signal more pressure on the Fed to reduce its stimulus, lifting Treasury yields and the dollar, and depressing gold.
Markets are also watching the European Central Bank’s policy meeting on Thursday, which is likely to emphasize that the euro zone economy is in a different stage of recovery than the United States.

Gold Up Again After A Crash

Gold futures inched up again after prices crashed by nearly $50 yesterday hitting multiyear lows on growing expectations the U.S. Federal Reserve will slow the pace of economic stimulus later this year.
Gold for August is trading up $8 at $ 1238 an ounce on the COMEX division of the New York Mercantile Exchange. Yesterday, it fell $45.30, or 3.6%, to close at $1,229.80 an ounce the lowest close for a most-active contract since August 2010.
Gold prices so far this week have lost nearly 4.5%, and are down 11.6% in the month-to-date as the end of June trading approaches. Gold futures are on track for a decline of 23% this quarter.
The weak US GDP data also supported the sentiments for gold today as it raised the hopes that Federal Reserve will maintain its bond purchases for longer.
U.S. stocks jumped Wednesday, pulling benchmark indexes into positive terrain for the week, as a downward revision in economic growth calmed concern about U.S. monetary policy. Asian equities also jumped tracking the US equities and robust growth in China industrial profits also boosted the markets.
China’s Shanghai Composite rose 1.2% after dropping in 15 of the past 17 trading days. Japan’s Nikkei Stock Average rose 1.8%, Hong Kong’s Hang Seng Index climbed 1.5%, and Australia’s S&P/ASX 200 gained 1.3%.
The advances followed a higher finish on Wall Street overnight after U.S. first-quarter GDP growth was revised down to 1.8%, from an earlier estimate of 2.4%.
Wells Fargo Advisors cut its year-end target range for gold, saying it now expects to see prices settle at $1,225 to $1,325 an ounce. It has previously expected prices to end the year at $1,475 to $1,525 an ounce. Wells Fargo also reduced its 2013 inflation target to 2% from 2.5%.
Goldman Sachs, Credit Suisse and HSBC downgraded their gold forecasts this week.
Gold production in China, the world's largest producer, is expected to rise about 10% this year to a record even as bullion prices slump, the nation's mining association said, according to media reports. The country recorded output of 403 tonnes last year. Production gained 12% in the first four months from a year earlier to 122.89 tonnes, according to the producer-funded China Gold Association.
MCX August gold futures may open today’s session near Rs 26300 levels with resistance near Rs 26500 levels.

MCX Silver Breaks Below Rs 40000

After trading a range bound manner for nearly 2 months, silver prices finally got the downward direction. The white metal slumped below Rs 40000 per kg today as the upbeat US data released yesterday supported the view that the Federal Reserve will slow the pace of monetary stimulus this year.
MCX July silver futures tumbled to as low as Rs 39325 per kg today. The metal had fallen by nearly 10% so far this month; however the fall in prices has been curbed by the extra soft Indian Rupee. The Indian Rupee has fallen by more than 5% so far this month to low of nearly 60 per dollar. The counter should find support near Rs 39000-37000 levels in the near term.
The international silver futures have been hurt more severely due to sharp appreciation in the US dollar. COMEX July silver futures tumbled below $19 an ounce, falling nearly 17% so far in June 2013.
The dollar-denominated commodities felt the pinch from a rise in the U.S. dollar against key rivals, with the greenback looking for a sixth consecutive day of gains. The buck rose Tuesday after a report showed U.S. sales of new homes rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller April home-price index jumped 2.5% in April, the largest monthly growth on record.47070
Federal Reserve Chairman Ben Bernanke last week indicated the central bank may slow the pace of bond buying as early as this year if the economy continues to improve within its forecasts. The Fed currently buys $85 billion a month in U.S. Treasurys.
Later Wednesday, the U.S. Commerce Department is slated to release the third estimate of gross domestic product for the first quarter.